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Work out what my goals/desires are for you and your wife.
Then implement the strategies that will enable you to reach your goals in the fastest possible way.
Take the path of least resistance!
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Also have your reno’s planned, with a backup plan!
If you aren’t doing the work yourself, make sure you have some tradies ready to roll once you gain access to the property.
You don’t want to be nearing the end of a 90 day settlement when the tradesmen begins the reno’s!
I do reno’s and believe me it can take 45 days to knock down a wall, strip out the kitchen and refurb it!
Project manahement with reno’s can be simple if you plan it. Otherwise it can be your worst nightmare!!
Good luck!
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It depends on the size of the wall/job and exactly what you want. Sometimes further adjustments are required. Old houses may have large mural cornices on the ceilings that can’t be replicated if you suddenly put a wall up and divide the room. You may need to then re-line the ceiling.
Tips: If you can’t do most of it yourself, then I would look for a carpenter as it may be cheaper than a builder.
Also seek trade prices from suppliers if you are going to do the ordering yourself (don’t be afraid to ask suppliers for trade prices).
If you want power/data points/switches in the new wall then you need a sparky (electrician). That will add extra cost.
It really depends on the size of the wall you want and what, if any, other adjustments are required that will determine the costs.
I would get atleast 3 quotes from licenced tradesman as the starting point.
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There are companies that provide reports of construction costs (materials & labour).
Reeds is one I can think of, but I know there are a couple of others, though their names have slipped my mind.
http://www.reedconstructiondata.com.au/home.php
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I attended the MasterClass on Sunday. I am also trying to get my head around all of the information. It’s becoming easier with more effort (and the homework).
Unicorn I think you’re correct with your interpretation on the relationship between yield, rental return percentages, and property prices.
Describing a property as a problem can be pretty generic these days, so I think investing is not just about looking for a property with a serious problem that would deter the regular buyer, but also doing the number crunching on a property and being able to see the profit in a deal by implementing a strategy.
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Good luck with your plan!
Though as some other posts have hinted, you will need to be able to professionally report the deals to possible buyers/investors.
Are you finding many (any) investment properties at the moment?
How are you doing/reporting the figures on them?
What makes you and your deals more appealing to an investor than another bird dog with proven experience?
I don’t want to sound like I’m hosing your idea down – just be aware that it is VERY HARD WORK, and it’s time consuming. And that’s after you’ve learnt how to analyse property and deals…
Best of luck!
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Love your work!!
Great creative ideas that work a treat. I suppose you’ve created a win-win-win-win-win situation…
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And so long as the government keeps the scheme going in a year or two. This scheme may not be around forever.
Though I do like your way of thinking!
What if you purchased a block of units that are under the one title. I wonder if you could use the FOHG to help fund the purchase, then after 12 months, strata the block, or subdivide it into different seperate titles…
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I don’t know of any Sydney-specific problems that you may face when developing.
Obviously council regulations (and even state regulations) will govern the extend of your project.
Though a consideration you may want to acknowledge is history. In most if not all councils there are heritage considerations given to property sites. Some sites might be heritage listed, while others may not be but due to their age and location the council and/or residents may be opposed to any form of development.
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Haven’t used any of these. Though I recently purchased Investment Detective.
So far I have found it is easy to use and a very needed too to not only number crunch scenarios, but maintain legitimate figures.
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Check the governing local council’s LEP (Local Environment Plan) and also it’s DCP (Development Control Plan). This should tell you the zoning and building regulations for the land you are referring to.
Also consult council staff (town planners) on any interpretations you may be unsure of.
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Either way the tennent still owes. At least that’s my understanding…
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Also it’s not just about “finding” a property that has a better than the average yield in the area. You need to be able to see past the property and see the profit in the deal.
If you know that minor alterations can change the property, perhaps a small reno, and increase the property value or rental yield, then there may be greater profit in the deal rather than what the current property provides.
I was there on Sunday – it was fantastic! Though I have been continually re-reading my notes on this lesson to try and absorb it all.
Have you guys done your homework? I have! Grab the newspaper and crunch some numbers from the real estate adds. It may help you understand it better…
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Hi Terrabyte!
I would first increase your education and knowledge. Learn about strategies, tax structures, returns and yields, and know what you want.
I would also consider attending one of Steve’s courses, such as the MasterClass. I did my first on Sunday and learnt so much about what I need to know in order to become an investor.
That way, regardless of interest rates going up or down of staying flat, I can apply strategies to make profit.
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I think Kiyosaki does get many Australian professionals to assist with his courses that he runs here in OZ. Though the courses arean’t cheap.
That’s one thing I liked about Steve’s courses – the value. He doesn’t charge $5000 to attend. And he does give you loads of information.
Have you booked into one of Steve’s MasterClass yet? I did my first last Sunday in Sydney. The value was fantastic. I learned lots of information on strategies that are applicable to the Australian market.
I booked into the Melbourne Power workshop too. Can’t wait!
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Mark,
I don’t know the answer to all of the points you have requested, but I’ll help you as much as I can with what I do know.
Perhaps others in the forum can provide further info, or possibly correct me if any of my info is incorrect.
Firstly, have you attended a MasterClass yet? I reccommend that you do. I did my first last Sunday and learnt heaps!
Many of the figures you seek can differ from property to property or deal to deal.
Legal costs can vary depending on the type of service you are using. Though you might be looking at anything between $2000 and $4000 or more for legals. Legals can be broken up also inro specific costs for specific services, such as title searches, contracts.
Loan applications costs can differ from lender to lender, some I have seen are around $200 – $500.
I’m unsure what you mean by Mortgage Registration and Duties. Perhaps they are calculated as a percentage of the mortgage amount (like mortgage stamp duty) and they differ from state to state.
You may find this info from the Department of Internal Revenue in your state – they all have websites with information.
Building Inspections wouldn’t bee too costly, but again prices differ from builder to builder around the country. You could also get a quantity surveyor to carry this out but may or may not cost more.
Council rates are determined by the local governing authority. They calculate what the land value is and charge a small percentage rto the property owner as rates. These can differ from differing councils. You can call any council and ask them for their rate charges (many have dedicated staff for rates) or if you have a specific property on the market, the real estate agent should have this information AND the utilities expenses for the property.
Obviously the utilities differ from property to property depending on peoples usage!
Insurance premiums – what types of insurance are you wanting info on? I need some specifics on what you are seeking info for.
Maintenance costs differ again from property to property. Older properties are going to require more TLC than newer ones (unless the new ones are very dodgy built!).
I would budget for perhaps 2%PA or something similar tor maintenance, but again depending on the property age, environmental factors, etc, etc.
Hope this helps!
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It’s great that you have a plan loungeact! This is the first step – which is what most people don’t have. You NEED a plan. And once you make a plan, make a backup plan!
Scotty raised some perfect points with his response. Book yourself into one of Steve’s courses. Seriously! Now that you have a plan you need the education on strategies (these being wraps, demo’s, lease options, etc).
I’ve done courses with other wealth trainers that have cost me $5000 but Steve’s Master Class is without doubt one of the best courses you can attend for the price you pay!
– Set your plan and stick to it.
– Acquire the education on strategies (this is continual and never ending).
– Get stuck into it!And if you get stuck/unsure what to do next or where to go, then come back and ask someone – we’re in the same boat as you are.
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some labourers get well paid – after all it’s very physically demanding. And these days there are shortages of labourers (especially good ones!) as nobody wants to do the hard yards!
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also the Reserve Bank website has other information you may be interest in, such as interest rate announcements.
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you can also try the real estate institute in your state
not sure on the other states but I’m sure you can google them…
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